Unprecedented opportunities continue to crop up in the historic U.S. $20 gold piece market. This time, both $20 gold pieces (St. Gaudens and Liberty varieties) in Mint State 63, have simultaneously surfaced in the market at their lowest premium to spot gold ever. We identified a similar opportunity in the MS64 St. Gaudens variety in April of this year and sold over 500 coins in just two days. The price dip in these MS63 grade $20’s puts both coins at less than 16% over spot gold, which at one time was unheard of for even a raw uncirculated coin, much less the higher grade MS63 varieties. In fact, the MS63 St. Gaudens are so inexpensive at 13% over spot (even less with quantity discounts), that they are only $115 more than a modern American Eagle - the lowest such differential - in both percentage and nominal terms - on record!

MS63 grade $20 gold pieces offer a unique opportunity within the choice uncirculated coin market. Because they already trade closer to the gold price to begin with than a higher rated coin (MS64, 65, etc.), premium fluctuations can also take them closer to the underlying gold price than any other choice rated coin. Such a condition, as the one we have identified here, affords the buyer the unique opportunity to maximize premium potential without vacating basic exposure to a potentially advancing gold price.

To get an idea of just what kind of premium potential we’re talking about, look no further than what these two coins did in 2008/9 (see accompanying graphs). At that time, premiums on the MS63 $20 St. Gaudens peaked at 95% over gold, and the MS63 Liberties at a whopping 2.75X the price of gold! Such expansion makes the current 13% premium on the 63 St.’s and the 16% premium on the 63 Lib’s appear absurdly low.

If you’re contemplating whether or not its worth the small jump in price for the Liberty, consider that the graded population in both NGC and PCGS (the two primary grading companies) for the MS63 Liberty in its three most common dates (dates 1900,04,07) is approximately 188,000 coins, and for MS63 $20 St. Gaudens in its three most common dates (1908 N/M, 24, 27) is approximately 380,000 coins. That means, by graded population, the MS63 Liberties are technically twice as rare as the MS63 St. Gaudens, but only $40 more expensive.